Taking Environmental Laws Seriously: North Carolina v. EPA

Many environmental organizations were stunned recently when the D.C. Circuit vacated the EPA’s implementation of the Clean Air Interstate Rule (“CAIR”) in North Carolina v. EPA. According to the Court, the CAIR failed to follow Clean Air Act (“CAA”) statutory mandates.

This rule, which for the first time seemed to put teeth into the CAA’s requirement that states not contribute to other states’ unhealthful levels of pollutants, was judged inconsistent with specific requirements of that section of the statute, 42 U.S.C. Sec. 7410(a)(2)(D)(i)(1).

Since the CAIR seemed poised to produce actual reductions in harmful pollutants, which could save 17,000 lives annually, the dismay is understandable. After all, prior EPA enforcement of section 7410(a)(2)(D)(i)(1) was woefully inadequate, leaving many states in situations where it was almost technically impossible for them to meet the CAA’s requirements within their state. And this was the only Bush EPA action that had received broad support from environmental and public health organizations. Nevertheless, as the D.C. Circuit reminds us, “all the policy reasons in the world cannot justify reading a substantive portion out of a statute.”

The DC Circuit correctly noted that under Sec. 7410(a)(2)(D)(i)(1), the EPA could only approve states’ State Implementation Plans, or SIPs, if the plans insured that pollutant sources within that state did not cause significant pollution loads in other states. This reflects one of the prime reasons for a federal air pollution control law in the first place – the abatement and control of interstate pollution. Unfortunately, for a variety of reasons, both technical and political, this requirement lay dormant for most of the history of the Act. The evolving understanding of this problem finally led individual states to petition the EPA to make findings of “out of state contributions” as early as 1997, leading to the first real attempt of the EPA to address this important issue.

Over the evolving attempts to do so under both the Clinton and Bush administrations, the DC Circuit has been consistent in its requirement that the EPA hew to specific statutory language in the Act, while also exhibiting a high degree of deference to specific agency scientific and technical findings of contribution. Thus, in Michigan v. EPA and in Appalachian Power Company v. EPA, the DC Circuit broadly upheld the EPA’s findings that specific sources were causing downwind non-compliance, and even upheld a somewhat novel use of cost reduction analysis to allow the EPA to make this determination on a wider and broader scale.

These prior decisions and current vogue of pollutant trading systems led many to believe that the DC Circuit would approve a broad trading system as a solution to the interstate problem. A broad trading system, like CAIR, however, fails to meet the requirements of the section at issue because it doesn’t pinpoint which sources cause downwind state non-compliance, nor does it require those sources to make the reductions necessary to return downwind state compliance. Though CAIR clearly would make improvements in overall air quality in the Eastern United States, thus meeting several of the overall goals of the CAA, it fails to do so in the way that takes account of all values at issue in the CAA. As North Carolina correctly noted, the CAA not only requires overall air quality to be improved, but mandates improvements in specific areas that are being harmed by out of state sources. It is not enough to improve the air quality in the Washington D.C. metro area, if Charlotte, North Carolina is still being inundated with pollutants from upwind states. Moreover, the competitive economic advantages and disadvantages of states struggling to meet their CAA requirements while protecting the health of their citizens (in other words, the federalism and sovereignty issues) are mostly ignored by a rule like CAIR.

Not having a shortcut like CAIR makes for a harder administration of this CAA provision to be sure, since it requires the EPA to focus on and reduce sources on an individual basis. But the DC Circuit in Michigan and Appalachian Power has shown a great degree of deference as to how this can be accomplished, and what evidence can be used to make this finding. While this means that some reductions will surely take longer without CAIR, it needn’t delay real health improvements if the agency acts quickly to make requested findings on upwind sources and is willing to impose a Federal Implementation Plan (or “FIP”) on non-compliant states.

While environmentalists were understandably thankful that CAIR seemed to represent some significant pollution reductions, the method of avoiding legislative specificities in this case are simply part and parcel of the Bush Administration’s attempts to accomplish its policy goals without following the legalities of the CAA. Just because the result would have been “better” in this case than in the Administration’s Mercury rule or New Source Review Routine Maintenance and Repair Rule, doesn’t make its use less dangerous. This case reminds us again that the statutory mandates of our environmental laws are important, and that an individual administration cannot simply change or alter them on its whim. The complexities of pollution reduction and accompanying issues of health and economic development require that policy choices be made in the appropriate arena, the legislature. If our policy provisions in the current CAA are unworkable, let us explore changing them there.

This case should also remind us, as we focus on the big issue of climate change, that we still have work to do on more traditional pollution control. Perhaps this will lead to a truly integrated and thoughtful debate on these intertwined issues in the next administration.

(Note: this opinion editorial first appeared in JURIST. -VF)


EPA Should Say "No" to Continued Unhealthy Air in Houston

Last week the Texas Commission on Environmental Quality announced that the Houston-Galveston-Brazoria region will not comply with the Clean Air Act’s requirement to eliminate unhealthy levels of ozone by 2010, ensuring that the state will ask the EPA for an extension of time until 2018 to reach attainment. The EPA should just say “No!”

The Clean Air Act has required the states to ensure that their citizens breathe clean air since 1975. Unsatisfied with lagging results for ozone, Congress passed an amendment in 1990 setting up a new timetable for compliance with healthy ozone levels. That statute realistically noted that those cities that had the worst problem with ozone, such as Los Angeles and Houston, could have more time to address the issue. But if cities failed to meet their targeted deadline, automatic provisions required more stringent controls on existing sources and a cut-off of federal assistance for highway building.

Due to extensive lobbying, Houston was given a special compliance deadline of 2007, later than all other cities except Los Angeles.   The deadline was extended to 2010 when new studies showed that the areas must have more stringent ozone controls to provide for the public health. Now the TCEQ claims that meeting that target deadline is impossible. This is simply not true, and the citizens of Houston should not have to suffer because Texas has dragged its feet for thirty years in addressing this problem.

The TCEQ was under a deadline to clean the air of unhealthy ozone in 1975, and given even more explicit direction to do so in 1990. But unlike some other cities that at least made progress in the ensuing decade, the ozone problem in Houston (and in some other Texas cities) got worse, not better. Los Angeles, a far larger city with robust growth on a par with Houston, reduced its unhealthy ozone days by over 75%, ceding its undesirable “most polluted city” moniker to Houston in some years.

The TCEQ, with direction and pressure from the legislature and governor, squandered its opportunities over the years to lay the groundwork for future reductions. Claiming impossibility now is like a teenager putting off his homework to party and play and then asking for an extension to turn it in. Except late homework doesn’t kill people; ozone pollution does.

The TCEQ now wishes to rely on expected future reductions from new automobiles to help with the ozone problems, rather than trying to control the problem now through further stationary source reductions of ozone precursors, intensified control of transport and off-loading equipment, development controls and alternative transportation planning. This not only allows us to be exposed to unhealthful air for a longer period of time, it is also unfair to all of the other states that have taken the difficult steps to ensure the health of their citizens.

It is true that more cost efficient controls could come through national controls on marine, air and rail sources rather than further stationary sources or automobile usage, and that there is a question of the ability of the state to control these sources. But rather than throw up its hands and wait, the state of Texas should be working with the state of California, which is lobbying Congress to change the laws in controlling these sources more effectively. And until that time, the state should control what it can control including port equipment, truck-stops, stationary sources, development location and existing automobile usage.

Granting an extension won’t even necessarily address the problem in the future. There is no guarantee that the TCEQ target of 2018 will be met or that the ozone levels won’t need to be controlled even more strictly in the future. Why should we assume that giving an extension will not only encourage further postponement of real leadership in addressing the problem? In 2018, will the TCEQ again be claiming impossibility in meeting the ozone standard?

In 1996, the state of Georgia claimed that it would be impossible for the Atlanta metro area to meet its earlier deadline for ozone compliance. It was expected that the EPA wouldn’t immediately enforce the law and would instead give Georgia a pass. But the EPA and other federal agencies did follow the law, and the Atlanta area was cut-off from federal highway funding for the metro region.

Spurred by this loss of money, the state created the Georgia Regional Transportation Authority, which required all affected jurisdictions to plan growth and development together or face penalties. With this in place, the state figured out how to control runaway polluting development at no cost to Atlanta’s growth. All it took was an incentive to address the problem.

One would hope that the health of its citizens would be enough incentive for the state of Texas to make the decisions necessary to control ozone in the Houston area. But since that is not the case, we can hope that the EPA will follow the law and not allow the state to continue endangering our health.

Victor B. Flatt is the A.L. O’Quinn Chair in Environmental Law at the University of Houston Law Center